ETHO ISSUER
The Etho Climate Leadership U.S. ETF is managed by Etho Capital, LLC, the Index Provider, and aims to track the performance of U.S. companies that are leaders in reducing their carbon impact. Etho Capital, LLC created the Etho Climate Leadership Index to identify and include companies with a carbon impact at least 50% better than their industry average. The index excludes companies in the fossil fuel energy sector, tobacco industry, and aerospace and defense industry that produce weapons, while also considering negative environmental sustainability impacts, as defined by certain non-governmental organizations. The ETF is reconstituted annually in April, maintaining a focus on environmental sustainability and carbon reduction.
ETHO DIVIDEND
While the Etho Climate Leadership U.S. ETF (ETHO) primarily focuses on environmentally responsible investing, it does participate in dividend distribution. ETHO follows a dividend distribution schedule in line with the performance of the underlying index, the Etho Climate Leadership Index. Dividend eligibility is determined by the constituent companies' individual dividend policies, and distributions typically occur on a regular basis, offering investors an opportunity for both sustainable investing and potential dividend income.
ETHO TRACKING
Etho Climate Leadership U.S. ETF is designed to closely track the Etho Climate Leadership Index - US, which was developed by Etho Capital, LLC. This index monitors the performance of U.S. companies that excel in reducing their carbon impact, assessing greenhouse gas emissions relative to market capitalization. The index includes companies with a carbon impact at least 50% better than their industry average and excludes those associated with negative environmental, social, or corporate governance profiles. The ETF's objective is to replicate the index's composition, offering investors a sustainable investment option aligned with companies leading the way in carbon reduction efforts.
ETHO CORRELATION
The correlation aspect of the Etho Climate Leadership U.S. ETF (ETHO) is primarily driven by its focus on U.S. companies that are leaders in their industry regarding their carbon impact. Since ETHO follows the Etho Climate Leadership Index, its correlation with the performance of these environmentally conscious companies is expected to be strong. This correlation makes ETHO a suitable choice for investors seeking exposure to environmentally responsible investments and looking to align their portfolios with climate-conscious goals.
ETHO SECTOR
The Etho Climate Leadership U.S. ETF (ETHO) focuses on the climate leadership sector by tracking the Etho Climate Leadership Index - US. This index is comprised of U.S. companies recognized for their industry-leading efforts to reduce carbon impact, calculated based on their greenhouse gas emissions relative to market capitalization. ETHO excludes companies in fossil fuel energy, tobacco, aerospace and defense weapons production, gambling, gold and silver sub-industries, as well as those with negative environmental sustainability profiles. By investing in this sector, ETHO aims to provide investors with exposure to companies committed to positive environmental and social impact while seeking to minimize the carbon footprint of their portfolios.
ETHO EXPOSURE
The Etho Climate Leadership U.S. ETF (ETHO) is designed to provide exposure to a diversified set of U.S. companies that excel in reducing their carbon impact. The ETF tracks the Etho Climate Leadership Index, which includes companies with greenhouse gas emissions at least 50% lower than the industry average. It excludes firms associated with negative environmental, social, or corporate governance profiles and screens out those in the fossil fuel energy sector, tobacco industry, aerospace and defense companies that produce weapons, and certain other industries. ETHO offers investors a way to align their portfolios with sustainability goals and invest in companies committed to reducing their carbon footprint.